Introduction
The health care industry has widely adopted strategic planning as a management tool. Strategic planning can help a health care facility improve on its financial performance as well as move towards the achievement of its goals through improved decision making, better viewing of the future, and realization of the need for innovation as well as improvement in the communication and overall coordination of the organization. Most health care providers also rely on strategic planning to assist in the allocation of funds and other available resources. It helps them to determine projects or the areas to give a priority in financial improvements. Strategic management was adopted due to the increased volatility of today’s health care environment that has rendered traditional tools of planning inadequate for financially guiding the managers (Susanna, Krentz, and Ryan, 2000).
Reasons as to why strategic planning is unsuccessful
Strategic management may however become unsuccessful. The success of a strategic plan depends on how it is carried out and the support it receives from the members of the organization. This is because it requires a lot of commitment which may be lacking in most health care facilities. When a strategy is being planned, the whole team should be involved. When those to be affected are involved, their understanding of the strategic plan is increased and so is their commitment. But most members in the facility may be ignorant leading to less commitment to the plan. Another reason why strategic planning may be unsuccessful due to the reason that it requires a considerable amount of time for it to succeed. Issues such as inadequate time should not arise in order for strategic planning to succeed. Strategic planning also requires the participation of every member which can only be achieved through the motivation of the employees. Commitment should therefore be seen from the top to the bottom-most leadership. Strategic planning may also suffer bias when carried by the organization management team since they are also part of the organization, therefore, hindering its success (Anonymous, 2000).
What should be done to make strategic planning successful
Strategic planning should also be made a responsibility of all parties in the healthcare organization. This is because it affects each and every person in one way or another. A clear understanding of the plan and the way of carrying it should be made clear to everyone in order for them to be able to incorporate it. Strategic planning also aims at bringing in positive impacts to the organization which will be enjoyed by every member of the organization. Every member should therefore try to gear his or her efforts towards ensuring its success (Horak, 1997).
The success of a strategic plan also requires that the management build trust in the facilitator who is offering consultation on the planning process, and also have an understanding that all decisions lie on the management. A planning committee that is made of experts should be made to undertake the task of strategic planning. When all the members of the board are involved, awareness is created and a sense of ownership is instilled in them (Zuckerman, 2000). They will therefore feel part of the plan and will work hard to achieve the plan.
Conclusion
Enough time should be allowed between the different stages of planning. This will allow the members good times to check the facts and understand them. The use of an external facilitator can help prevent bias from the members and allow for equal participation from the members (Reiff and Nelson, 1993). An external facilitator will also allow for equal participation from the members hence encouraging them to contribute to the planning process. Brainstorming should also be allowed from the members so as to get their ideas which may be useful for the planning process. The management should make sure that all members are aware of their planning needs to avoid conflict of ideas. Priority should be given to the more profitable sections to ensure the stability of the organization. Most healthcare systems are working towards cutting costs for their services and therefore needs the adoption of an appropriate financial management plan.
References
Anonymous, (2000). Scenario planning a useful tool for health care’s uncertain times. Health Care Strategic Management lt;/em>, 18 (10), 15-17.
Horak, B., (1997). Strategic planning in healthcare: building a quality-based plan step by step. New York: Quality Resources Publishers. Web.
Krentz, S. E. and Gish, R. S. (2000). Using scenario analysis to determine managed care strategy. Healthcare Financial Management, 54 (9), 41-43.
Ontario Ministry of Agriculture Food and Rural Affairs. Strategic planning. Web.
Reiff, S. D., and Nelson, M. (1993). Financial planning: A necessity for the ’90s. Computers in Healthcare, 14 (5), 20-24.
Zuckerman, A. (2000). Leveraging strategic planning for improved financial performance. Healthcare Financial Management, 54 (12), 54-57.